Question

Problem 9-2A Entries for payroll transactions LO P2, P3 On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $22,760 of office salaries and $70.840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,560 of federal income taxes. $1,390 of medical insurance deductions, and $840 of union dues. No employee earned more than $7.000 in this first period. Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 5% of the first $7000 pald each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) Regis Company's Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA January 8 earnings subject to tax $ 93,600 93,600 93,600 93,600 6.20% 1.45% 0.60% 5.00% 5,803 20 1,357 20 561.60 4,680.00 1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.)

Answer 1

1.1)
Regis Company's
Tax	January 8 earnings subject to tax (a)	Tax Rate (b)	Tax Amount (a*b)
FICA-Social Security	$93,600	6.20%	$5,803
FICA -Medicare	$93,600	1.45%	$1,357
FUTA	$93,600	0.60%	$562
SUTA	$93,600	5.00%	$4,680

2.2) Journal Entry
Date	Account Titles and Explanation	Debit	Credit
Jan. 8	Office Salaries Expense	$22,760
	Sales Salaries Expense	$70,840
	FICA - Social Security Taxes Payable		$5,803
	FICA - Medicare Taxes Payable		$1,357
	Employee Federal Income Taxes Payable		$13,560
	Employee Medical Insurance Payable		$1,390
	Employee Union Dues Payable		$840
	Salaries Payable ($22,760 + $70,840 - $5,803 - $1,357 - $13,560 - $1,390)		$70,650
	(To record the employee payroll expense and liabilities)